Khushi Malhotra and Dharmaraj Dhutia
Mumbai, 21 April (Reuters) –
The yield of the Indian government’s bond fell rapidly on Monday as the underlying sentiment remained rapidly, the central bank was expected to cut the rate of liquidity along with the infusion.
The benchmark 10 -year yield ended at 6.3164%, compared to the last off of 6.3709%, and the lowest since 9 November 2021.
“We are essential to maintain the surplus along with measures of liquidity along with a further basis points (BPS),” said Caton Parikh, head of fixed income at ICICI Prudential Life Insurance, said.
“With the view of the terminal rate at 5.50%, we hope that the yield of a 10 -year government bond will be less towards 6.25%.”
The Reserve Bank of India is ready to buy a bond of Rs 200 billion ($ 2.35 billion) on Tuesday, followed by a similar amount of purchase next week.
The RBI has infected a 5.81 trillion through Forex Swap along with loan purchases since the beginning of 2025.
Earlier this month, the Central Bank reduced the repo rate to 6.00% by 25 basis points to 6.00% and turned its stance from “neutral” to “adjustment”.
Traders said that positive steps in local currency are also promoting the investor’s spirit. Indian rupees climbed 0.3% on Monday, which supported the negative side in bond yield.
India and the United States and the United States and the United States also sink India’s overnight index swap rates as foreign banks, especially from foreign banks, especially from foreign banks, as foreign banks, especially from foreign banks.
One -year OIS rate fell at 4 BPS, while 4 BPS declined at the rate of two years and 5 BPS in five years rates.
For the month, the swap rate is less than 30–35 bps. ($ 1 = 85.0940 Indian rupees) (Reporting by Khushi Malhotra and Dharamraj Dhutia; editing by Varun HK)
